FR B Non-current assets: tangible, intangible and impairment

Which cost is included in the initial cost of a property, plant and equipment item?

• 1 Costs of training staff to use it
• 2 General administration overheads
• 3 Costs directly attributable to getting the asset ready for use
• 4 Abnormal waste

Where is a revaluation surplus on a non-current asset recognised?

• 1 In revenue
• 2 In cost of sales
• 3 In finance income
• 4 In other comprehensive income and held in equity

An asset with a carrying amount of $60,000 and 6 years of life left is revalued to $90,000. What is the annual depreciation after the revaluation?

• 1 $10,000
• 2 $15,000
• 3 $5,000
• 4 $9,000

Under IAS 38, which of these is not recognised as an intangible asset?

• 1 Development costs that meet the criteria
• 2 A purchased licence
• 3 Internally generated goodwill
• 4 A purchased patent

Research costs under IAS 38 are:

• 1 Capitalised as development costs
• 2 Recognised in equity
• 3 Expensed when incurred
• 4 Capitalised and amortised

What is the recoverable amount of an asset?

• 1 The carrying amount
• 2 The lower of cost and net realisable value
• 3 The fair value
• 4 The higher of fair value less costs of disposal and value in use

A cash-generating unit has a carrying amount of $500,000, including goodwill of $80,000, and a recoverable amount of $380,000. What impairment loss is allocated to goodwill?

• 1 $80,000
• 2 $40,000
• 3 $120,000
• 4 $0

A cash-generating unit has a carrying amount of $500,000, including goodwill of $80,000, and a recoverable amount of $380,000. How much of the loss is allocated to the other assets?

• 1 $40,000
• 2 $80,000
• 3 $0
• 4 $120,000

Which statement about reversing impairment losses is correct?

• 1 Losses are reversed in full always
• 2 No loss is ever reversed
• 3 A loss on goodwill is never reversed
• 4 All losses are reversed

What is investment property?

• 1 Property used for administration
• 2 Property held to earn rent or for capital growth
• 3 Property held for sale in the ordinary course
• 4 Property used in production